CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

Which of the following is another term for the net trade cycle?

A. Cash conversion cycle
B. Inventory cycle
C. Sales cycle
Correct Answer: A

Another term for the net trade cycle is the cash conversion cycle. The net trade cycle helps the analyst understand why cash flow has improved or deteriorated.

User Contributed Comments 1

User Comment
azramirza CCC(NTC)=(Days sales O/S)+(Days of Inventory on hand)-No of days payable
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